If the Multiplier Is 4,a $10 Billion Increase in Autonomous

question 58

Multiple Choice

If the multiplier is 4,a $10 billion increase in autonomous investment will cause a

• A)$10 billion increase in equilibrium investment
• B)$40 billion increase in equilibrium investment
• C)$40 billion increase in equilibrium real GDP demanded
• D)$400 billion increase in equilibrium real GDP demanded
• E)$40 billion increase in consumption spending

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